Luxury brands rely on exclusivity, craftsmanship, and a hefty price tag to maintain their coveted positions in the market.

In recent weeks, China has thrown a wrench into the gears of this high-end machine. Chinese manufacturers have been revealing the actual production costs of luxury items, which has forced a major shift in how consumers and brands view value, pricing, and authenticity.

It turns out that some of the most iconic luxury items on the market — Birkin bags, Louis Vuitton accessories, and Lululemon leggings — are produced for a fraction of what consumers pay.

As global trade tensions continue to heat up, especially between the US and China, this level of transparency is raising serious questions about the true cost of luxury. In turn, it challenges brands to adapt their value propositions in response to a rapidly changing marketplace.

Consider the Birkin bag, which carries a retail price tag of $34,000. According to Chinese suppliers, the actual production cost is just $1,400.

Similarly, Lululemon leggings, typically priced at $100, cost only a few dollars to make, ranging from $5 to $6.

The impact of such revelations is profound, fundamentally questioning the very definition of luxury for consumers, and potentially forcing a reset in how luxury brands position themselves moving forward.

Shifting views on exclusivity and brand identity

The idea that only a select few could afford certain items elevated luxury brands to the realm of status symbols.

Over time, these brands carefully constructed their identity around rarity — items that could not be easily replicated, creating an aura of prestige that was often worth the high price. But now, with China’s recent campaign, we are seeing how some of these claims might be less substantial than once believed.

When it is revealed that 80 per cent of the production for iconic luxury brands such as Hermes, Gucci, and Prada takes place in China, with items often labeled “Made in Italy”, it forces consumers to question what makes these items truly valuable. This seismic shift is especially significant for the Middle East, where luxury spending is a cornerstone of consumer culture. Therefore, the focus of brands can no longer just be on a glamorous logo or a fancy label.

It has to go deeper into authenticity, materials, and ethical production practices — something younger consumers, especially Gen Z, have begun to demand.

How luxury brands must adapt

Luxury brands should now rethink their entire unique selling points. The days of simply relying on the mystique of exclusivity are probably over. Luxury brands will now need to adapt to the growing demand for transparency, sustainability, and authenticity.

While brands like Louis Vuitton and Gucci have yet to directly address the specific campaign launched by Chinese manufacturers, they have been adjusting their strategies in response to broader market conditions. Over the past few years, we’ve seen a greater focus on storytelling, particularly around craftsmanship, sustainability, and ethical sourcing.

This movement gained momentum in 2024, when it was revealed that Dior’s $2,780 bags, long marketed as symbols of exclusivity, were produced for just $57.

In a market where consumers are more socially conscious than ever before, brands must double down on their promises and create new narratives that align with the evolving consumer mindset.

Brands that have relied on traditional marketing and celebrity endorsements must now lean into creating meaningful connections with their consumers.

Sell a high-priced handbag with an ad campaign featuring a supermodel will no longer cut it. The future of luxury lies in creating value that resonates with consumers on a deeper level — offering products that aren’t just aspirational, but also ethically sound and transparently priced.

The future of luxury consumerism

Luxury brands will have to respond to a new generation of consumers who value sustainability over logos, authenticity over exclusivity, and ethics over price tags. Gen Z and Millennials are driving this shift, and their buying behaviour will determine the future of the industry.

In 2024, Gen Zs and millennials accounted for 45 per cent of global luxury purchases, despite representing just over 2 per cent of the total customer base, according to Bain & Company.

Gen Zs and millennials have grown up with access to information at their fingertips. They are well-versed in the environmental and social impact of their purchases, and they’re increasingly choosing to support brands that align with their values. For them, luxury is no longer just about price — it’s about purpose.

Research from the World Economic Forum highlights that over a third of Gen Z consumers choose brands that demonstrate environmentally sustainable practices, and 28 per cent have ceased purchasing from brands with poor ethical or sustainability values.

A study by Savanta indicates that 60 per cent of consumers aged 18-34 prioritise a brand’s authenticity and adherence to its values when making purchasing decisions. This trend underscores a generational shift towards conscientious consumption.

Luxury’s new frontier lies in experience, not ownership

For luxury brands, the ultimate challenge lies not in lowering prices or increasing accessibility, but in discovering new ways to redefine exclusivity.

In the age of mass production, the new luxury is not ownership, but experience. We are on the verge of a shift in branding, moving from offering expensive, mass-produced goods to providing experiences that are unique, memorable, and deeply personal.

The exclusivity will eventually come from the personal connections brands build with consumers, the stories they tell, and the memories they create.

The Ministry of Human Resources and Social Development in Saudi Arabia has announced a minimum 10-day leave for employees performing the annual Hajj pilgrimage for the first time.

Read-Hajj 2025: Saudi announces SR100,000 fine, ban for violations

The authority stated that the leave should be no less than 10 days and no more than 15 days, including the Eid al-Adha holiday, a Saudi Gazette report stated.

Labour law for employees

In a statement issued at the beginning of the Hajj season, the Ministry clarified that the Labour Law allows employees to take paid leave to perform Hajj once during their period of service, provided they have not performed it before and have completed at least two consecutive years of service with their employer.

Employer’s discretion

The Ministry also noted that employers have the right to determine the number of employees granted this leave each year, based on work requirements.

These regulations are intended to safeguard the rights of all parties involved in the employment relationship.

Oil prices pulled ahead in early Asian hours on Friday after China said its door is open for talks with the United States, raising hopes of a de-escalation in a bitter trade war between the world’s two largest economies.

Brent crude futures rose 38 cents, or 0.6 per cent, to $62.51 a barrel by 0136 GMT, while US West Texas Intermediate crude futures added 38 cents, or 0.6 per cent to $59.62 a barrel.

China’s commerce ministry on Friday said the United States has recently taken steps to open a dialogue with Beijing by conveying information through relevant parties.

Concerns that the broader trade war could push the global economy into a recession and crimp oil demand, just as the OPEC group is preparing to raise output, have weighed heavily on oil prices in recent weeks.okay

However, the signals of a potential easing in trade tensions between the United State and China, the world’s biggest importer of crude oil, supported sentiment towards crude.

Oil prices were also underpinned by a threat from US President Donald Trump to impose secondary sanctions on buyers of Iranian oil.

The threat raised fears of tighter crude oil supplies, ANZ bank analysts said in a note.

Trump’s comments followed a postponement of US talks with Iran over its nuclear program. He had previously restored a “maximum pressure” campaign against Iran, which included efforts to drive the country’s oil exports to zero, to help prevent Tehran from developing a nuclear weapon.

Oil prices had gained late in Thursday’s session to settle nearly 2 per cent higher on Trump’s remarks, erasing some of the losses recorded earlier in the week on expectations of more OPEC supply coming to the market.

Reuters on Wednesday reported that Saudi Arabia, de facto leader of OPEC, has briefed allies and industry experts that it is unwilling to prop up oil prices with further supply cuts.

Several OPEC members are set to suggest the group accelerates output hikes in June for a second consecutive month, Reuters earlier reported.

Eight OPEC countries will meet on May 5 to decide a June output plan.

Read more: IMF trims 2025 MENA growth forecast to 2.6% as global risks mount

The Royal Oman Police has announced a new set of regulations concerning the import of vehicles from GCC countries.

Represented by the Directorate General of Traffic and the Directorate General of Customs, the Royal Oman Police stated that, effective July 1, 2025, the Sultanate of Oman will no longer accept the ‘Clearance Certificate’ for vehicle imports, according to a report in the Oman Observer.

Read-New rule for businesses in Oman: Here’s what you need to know

Under the new rule, importers will be required to present an export certificate issued by the competent authorities in the vehicle’s country of registration.

Aim of the new regulation

This measure aims to regulate the process of importing used vehicles into the Sultanate via land, sea, and air entry points shared with other GCC member countries.

The change aligns with efforts to enhance customs procedures and uphold the integrity of vehicle registration systems.

Compliance to avoid border delays

Authorities have urged importers and customs agents to comply with the new requirements to avoid delays or complications at border crossings.

Conditions for vehicle imports

The Royal Oman Police has also outlined specific conditions for vehicles from other GCC countries to be eligible for import into Oman. The following types of vehicles are permitted:

• Private vehicles that are less than 7 years old
• Used trucks and buses that are less than 10 years old
• Other equipment that is less than 15 years old

Additionally, the import of tricycles or four-wheelers intended solely for transporting goods in designated areas is allowed.

The Saudi Tourism Authority (STA) signed 14 memorandums of understanding (MoUs) and facilitated an additional 52 agreements between Saudi partners and international tourism entities at the Arabian Travel Market (ATM) 2025.

Building on its record achievement of welcoming nearly 116 million visitors in 2024, STA used the four-day trade show to unveil new strategic partnerships, promote the country’s expanding tourism offerings, and spotlight opportunities for international collaboration.

“We came to ATM 2025 stronger than ever,” said Fahd Hamidaddin, CEO and board member of STA. “Securing 14 strategic partnerships is testament to the unparalleled opportunities on offer — from authentic connections to the warm Saudi welcome.”

Major partnerships and expanding reach

Among the 14 MoUs signed, key partnerships were established with global hotel giants Accor, IHG Hotels & Resorts, and Radisson Hotel Group.

Agreements were also secured with leading digital travel platforms including Booking.com, Hopper, Ticombo, and ViaKonnect.

Additional partnerships with Careem, Fazaa, Altanfeethi, Localbh, Rayna Tours, SEVEN Experience, and Stellar Marketing Solutions aim to boost connectivity and regional tourism development.

STA also enabled 52 MoUs between Saudi and international tourism stakeholders, reinforcing its private sector-driven approach.

Saudi Land pavilion draws 46,000 visitors at ATM

The “Saudi Land” pavilion attracted over 46,000 visitors and featured immersive activations promoting summer destinations like Aseer, Al Baha, Soudah, and Taif. Highlights included a tunnel exhibit contrasting coastal escapes with cool mountainous retreats, cultural heritage corners with live Bisht weaving and music, and previews of global events including the Esports World Cup and FIFA World Cup 2034 venues.

Cristiano Ronaldo’s personal Saudi travel itinerary was also featured, drawing attention to the kingdom’s growing appeal among international travellers.

Regional engagement and APAC Focus

STA’s leadership also engaged in high-level discussions during the event. Fahd Hamidaddin met with senior figures from Abu Dhabi’s Department of Culture and Tourism to explore regional collaboration.

On the final day, Alhasan Aldabbagh, president of Asia Pacific at STA, participated in the ‘APAC Market Impact’ panel, discussing Saudi’s initiatives to attract more visitors from China and India, including targeted digital campaigns and enhanced religious tourism experiences.

STA to continue momentum with $800bn tourism commitment

The $800bn government-backed tourism investment plan remains central to Saudi Arabia’s Vision 2030, as the country diversifies its economy and opens up to international markets.

“We have only just begun,” Hamidaddin said, inviting global players to participate in shaping the next chapter of Saudi tourism.